Volkswagen India May Cut Jobs; Warns Employees Via Letter

Volkswagen India has warned its employees through a letter that it may cut jobs at the Chakan facility. The job cutting is part of the German carmaker's global cost cutting plan to clean up its Diesel Gate scandal.

The letter from the management stated, "This is the time for survival of the fittest. If targets aren't met, the company may have to do away with extra workforce at the Chakan, Pune, plant."

ET has seen a copy of the letter, which is signed by Andreas Lauermann, the Volkswagen India Managing Director and Patrick Masson, the Executive Director Human Resource. Responding to ET's questions, Lauermann said that the company was affected by global crisis, but has also added a third shift in the Indian plant.

Volkswagen is downsizing however, because the carmaker has downsized the number of shifts in other plants such as Argentina, Russia, Mexico, and Brazil. Since the Chakan plant is depending primarily on export, loss of sales in other countries like Mexico could affect India, since Volkswagen's India plant exports over 50,000 units per year to Mexico.

In the letter, Volkswagen has mentioned saying if the Indian plant loses production numbers, its financial situation will be questioned globally. Volkswagen's plant in Chakan, India employees more than 4,000 people.